surfingthetrend
New Member
Cash: $ 1.45
Posts: 6
Joined: 10 May 2012
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| Dollar Tree - Technical Analysis |
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For those who believe that we are experiencing only a small correction to the main trend, Dollar Tree (DLTR) may signify a promising entry. This company, which represents a low-cost shop concept, has gained high visibility and had an exponential growth, about 600% since 2008.
This title is technically interesting, being guided by the basic technical signs: supports, resistances and trendlines. This trendline, which has guided a big part of this ascendant path, maintains the consistency and continues to serve as a reference. After reached a new high around $ 105, it happened the same as in the previous three tops, responding with a retraction. What happened before, and what can be expected to happen again, is that this retraction could serve to gain a new breath, breaking then the resistance and seeking for a new top.
Helping this retraction can be the closeness to the ascending trendline, which should also serve as a support. This significant declines that occurred in the last two sessions were made with weak volumes, which is relevant because can mean that this movement was only a profit-taking. Soon we shall see some definition in the market trend. For now, until proven otherwise, we continue in a strong bull market and the main entrances should follow this main trend…
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